ASX:NAB

Business Confidence in Australia Rises in April Despite Persistent Weakness, NAB Says

Business confidence in Australia rose 5 points to negative 24 in April, driven by partial recoveries in retail, construction, and recreation and personal services, although trend confidence remained strongly negative across all industries and regions, National Australia Bank (ASX:NAB) said in a Tuesday report.Business conditions fell by 3 points to 3 index points, marking a fourth straight monthly decline and remaining well below the long-run average, while employment declined, profitability remained flat, and trading conditions weakened.The April survey shows that the energy price shock is creating challenges for businesses, with rising cost pressures and a weakening outlook for future demand, said Gareth Spence, NAB head of Australian economics.Conditions declined across most industries, with slight improvements in manufacturing and retail, while by state, they rose by 12 points in Victoria but fell in all other regions.Capacity utilization fell to around 83%, its lowest level since July 2025, but still above its long-run average, while forward orders dropped by 4 points in April and capital expenditures fell by 8 points.Purchase costs rose to 4.5% on a quarterly equivalent basis, while labor costs edged up to 1.7%, product prices increased to 1.8%, and retail prices increased 3.2% to reach a multi-year high.

ASX Midday Sector Update: Financials Stocks Lead Broad Market Declines

All sectors on the Australian Securities Exchange were in the red in midday trading on Friday, with financial stocks falling past 2% to lead decliners, as oil prices climbed after reports of clashes between the US and Iran in and around the Strait of Hormuz.Commonwealth Bank of Australia (ASX:CBA) and Westpac Banking (ASX:WBC) both shed more than 2%, while National Australia Bank (ASX:NAB) was nearly 3% lower. Shares of Macquarie Group (ASX:MQG) were down more than 2% after earlier hitting a record high following its fiscal year 2026 results.

National Australia Bank Appoints Group Chief Risk Officer

National Australia Bank (ASX:NAB) appointed Connie Sokaris as group chief risk officer, effective Aug. 3, according to a Thursday Australian bourse filing.Sokaris will succeed Shaun Dooley, who declared in February that he intends to retire from the bank by the end of the year, the filing added.

Evans & Partners Upgrades National Australia Bank to Neutral from Negative; Price Target is AU$38

National Australia Bank (ASX:NAB) has an average rating of hold and mean price target of AU$38.66, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

National Australia Bank's Asset Quality Risks Build, But Demand Remains Solid, Says Jefferies

National Australia Bank (ASX:NAB) is facing rising asset quality risks as it posted a downbeat half-yearly result, Jefferies said Monday in a note, adding that demand remains resilient and costs are being managed.The bank reported a 26% decline in fiscal 2026 first-half cash earnings to AU$2.64 billion, missing Jefferies' estimate by 3%.The investment firm reduced its fiscal 2026 and 2028 EPS estimates by 1%, citing lower earnings from liquid assets and higher impairment charges for potential loan losses, partly offset by stronger profit margins.Jefferies said that investors are concerned about the bank's exposure to small and medium sized businesses (SMEs) in an uncertain macro environment. NAB is also setting aside more provisions for bad loans than its peers, which is impacting its returns by more than 1%.However, the brokerage continues to see an attractive risk-reward on the profile. Despite recent share underperformance, margins are expected to improve in the second half of the year.Jefferies maintained its buy rating on National Australia Bank but cut its price target to AU$46.98 from AU$47.73.

National Australia Bank's H1 Cash Earnings Miss Estimates on Software Capitalization Charges

National Australia Bank's (ASX:NAB) cash earnings in the half-year through March missed estimates on a one-off charge related to its software capitalization.Australia's largest business lender logged cash earnings of AU$2.64 billion during the six months through March, down 26% from AU$3.58 billion in the year-ago period, according to a Monday press release.Earnings per share shrank to AU$0.861 from AU$1.145 a year earlier.Analysts polled by FactSet forecast earnings of AU$0.97.The bank incurred AU$1.35 billion in technology expenses related to the amortization of software. Cash earnings fell due to changes with the bank's software capitalization policy. NAB recorded a post-tax charge of AU$949 million.NAB's software write-offs are "right in the middle of peers, but admitted they are "far from ideal," Group CEO Andrew Irvine said in an earnings call when an analyst pointed out that the bank had three software write-offs in the past seven years.Sans the charges, cash earnings would have increased 2.3% to AU$3.59 billion from AU$3.58 billion a year earlier.Attributable net profit declined 20% to AU$2.76 billion from AU$3.43 billion a year earlier.Net interest income jumped 2.3% year over year to AU$9.16 billion from AU$8.45 billion.Net interest margin grew 3 basis points to 1.81%, reflective of higher earnings from the deposit-replicating portfolio, combined with lower deposit expenses and deposit mix benefits.Net operating income for the six months ended March 31 edged up 3.1% to AU$10.9 billion from AU$10.3 billion a year earlier.Analysts surveyed by FactSet expected AU$10.96 billion in net operating income.The board declared an interim dividend of AU$0.85 per share, unchanged from the prior corresponding period, payable July 2 to shareholders on record as of May 8.

Australian Shares Decline; Viva Energy Expects Geelong Refinery Production to Reach Over 90% Capacity in June

Australian shares closed lower on Monday as investors await the Reserve Bank of Australia's monetary policy board meeting on Tuesday.The S&P/ASX 200 Index fell 0.37%, or 32.70 points, to close at 8,697.10.Brent crude oil futures inched up to $108.36 per barrel. US President Donald Trump said the US would start guiding neutral ships in the Persian Gulf through the Strait of Hormuz.On the domestic front, the ANZ-Indeed Australian job ads fell 0.8% month on month in April to a seasonally adjusted 113.3, following a revised 3.2% decrease to 114.2 in March, ANZ reported.Seasonally adjusted data revealed that the total number of dwellings approved in Australia fell by around 11% to 17,300 in March from 19,339 in the previous month, figures from the Australian Bureau of Statistics showed.The Melbourne Institute said its monthly inflation gauge recorded another increase in April, mainly driven by higher recreation-related prices, largely due to rising airfares.In company news, Viva Energy Group (ASX:VEA) expected repairs needed to restart the residue catalytic cracking unit at its fire-hit Geelong Refinery to take about six weeks before the unit returns to operation in June. The refinery expects to produce diesel and jet fuel at about 80% of capacity and petrol at roughly 60% while the unit remains offline. Its shares fell 4% at market close.National Australia Bank (ASX:NAB) reported fiscal first-half cash earnings of AU$0.861 per share, down from AU$1.145 a year earlier. Net operating income for the six months ended March 31 was AU$10.87 billion, compared with AU$10.27 billion a year earlier. Its shares closed down 1%.Lastly, Accent Group (ASX:AX1) lowered its earnings before interest and taxes (EBIT) guidance for the second half of fiscal year 2026 after higher fuel prices and deteriorating consumer confidence negatively impacted sales and margins in April. The company now expects fiscal second-half EBIT of AU$23 million to AU$28 million. In February, Accent Group guided for fiscal second-half EBIT of AU$30 million to AU$35 million. Its shares fell 13% on market close.

Update: National Australia Bank Posts Lower Fiscal H1 Cash Earnings, Higher Net Operating Income; Shares Fall 3%

(Updates to add stock movement in the headline and last paragraph)National Australia Bank (ASX:NAB) reported Monday fiscal first-half cash earnings of AU$0.861 per share, down from AU$1.145 a year earlier.Analysts polled by FactSet expected earnings of AU$0.97.Net operating income for the six months ended March 31 was AU$10.87 billion, compared with AU$10.27 billion a year earlier. Analysts surveyed by FactSet expected AU$10.96 billion.The board declared an interim dividend of AU$0.85 per share, unchanged from the prior corresponding period, payable July 2 to shareholders on record as of May 8.The bank's shares fell 3% in recent Monday trade.

ASX Preview: Australian Shares Set to Fall Amid RBA Hike Bets; National Australia Bank Posts Lower Fiscal H1 Cash Earnings, Higher Net Operating Income

Australian shares are poised to fall on Monday as investors brace for a likely Reserve Bank of Australia (RBA) rate hike to 4.35% on Tuesday, with persistent inflation pressures and rising fuel costs linked to Middle East supply disruptions keeping the central bank on a hawkish path even as global peers hold steady.On May 1, the S&P 500 and the Nasdaq Composite rose 0.3% and 0.9%, respectively, while the Dow Jones Industrial Average fell 0.3%.In the macroeconomy, Australia's building approvals and ANZ-Indeed job ads reports are due at 11:30 am Sydney time.In corporate news, National Australia Bank (ASX:NAB) reported Monday fiscal first-half cash earnings of AU$0.861 per share on net operating income of AU$10.87 billion, compared with cash earnings of AU$1.145 on net operating income of AU$10.27 billion a year earlier.Viva Energy Group (ASX:VEA) expected repairs needed to restart the residue catalytic cracking unit at its fire-hit Geelong Refinery to take about six weeks before the unit returns to operation in June.Australia's benchmark index rose 0.7% or 64 points to close at 8,729.80 on May 1.

National Australia Bank's Total Capital, CET1 Capital Up Year on Year in March Quarter

National Australia Bank's (ASX:NAB) total capital and Common Equity Tier 1 (CET1) capital both increased year over year in the March quarter, according to a Monday Australian bourse filing.The bank's total capital in the three months to March came in at AU$91.97 billion, up from the AU$89.62 billion it reported in the year-ago period. Its CET1 capital for the period clocked in at AU$52.39 billion, rising from the AU$51.24 billion it reported for the March 2025 quarter.Its Level 1 Group CET1 ratio for the March quarter was 11.5%, compared with a ratio of 11.8% in the prior-year period. It reported a liquidity coverage ratio of 132% for the quarter, compared with 139% in the same period in the previous year.

National Australia Bank Posts Lower Fiscal H1 Cash Earnings, Higher Net Operating Income

National Australia Bank (ASX:NAB) reported Monday fiscal first-half cash earnings of AU$0.861 per share, down from AU$1.145 a year earlier.Analysts polled by FactSet expected earnings of AU$0.97.Net operating income for the six months ended March 31 was AU$10.87 billion, compared with AU$10.27 billion a year earlier. Analysts surveyed by FactSet expected AU$10.96 billion.The board declared an interim dividend of AU$0.85 per share, unchanged from the prior corresponding period, payable July 2 to shareholders on record as of May 8.

National Australia Bank Posts Fiscal H1 Cash EPS of AU$0.861, Net Operating Income of AU$10.87 Billion

Australia's Payments Roundtable Seeks Feedback on Draft Vision for Account-to-Account Payments

The Account-to-Account Payments Roundtable released a public consultation on the draft vision for the future of account-to-account payments in Australia on Thursday, defining the desired end-user outcomes and future state for account-to-account payments, according to a same-day statement.The vision seeks to provide certainty to stakeholders on the long-term strategic direction for account-to-account payments in Australia and anchor the industry's development of account-to-account products, services, and underlying infrastructure.It noted the rapid changes, driven by advances in digital technologies such as artificial intelligence, digital assets, and digital identity, and their integration into the payments system.The development of a clear industry roadmap is the next step towards delivering the vision, per the statement. The roadmap will be developed collaboratively in 2026 through the roundtable process.The roundtable includes the Australian Payments Network, Australian Payments Plus, the Reserve Bank of Australia (RBA), and the Commonwealth Treasury. It was established in August 2025 under authorization by the Australian Competition and Consumer Commission.The deadline for the submission of consultations is May 22.

Australian Prudential Regulation Authority Warns Financial Sector Over AI-Related Risks

The Australian Prudential Regulation Authority (APRA) on Thursday called on the financial sector to enhance its management of AI-related risks, warning that information security practices are struggling to keep up with the speed of the technology's adoption.In a letter to the industry, the regulator outlined the findings of a review it launched last year, noting that the growing use of advanced AI is creating multiple new financial and operational vulnerabilities for banks, insurers, and superannuation trustees."Frontier AI models such as Anthropic's Claude Mythos, which could enhance the discovery of vulnerabilities by bad actors, are expected to further increase the probability, speed, and scale of cyber attacks," APRA said.The regulator found that financial corporates have a high interest in the potential benefits of AI usage, but in many cases lack the technical knowledge to effectively manage the associated risks.The APRA is not proposing to introduce additional requirements at this stage but expects to see a "significant improvement" in how the financial sector approaches AI-related risk management and governance.

National Australia Bank Shares Down After Resolution of Union Court Proceedings

National Australia Bank (ASX:NAB) shares were down about 1% in recent Monday trade following a Friday settlement with the Finance Sector Union of Australia to resolve court proceedings related to excessive additional working hours for employees.The settlement, reached on a without-admissions basis through mediation, includes the establishment of a health, safety, and well-being framework to mitigate the risks linked to working additional hours, and calls for greater oversight of such risks.The union and the bank said in a joint statement that they are "committed to continuing to work together to ensure fair and sustainable outcomes for all [National Australia Bank] employees."

National Australia Bank Partners With Imperium Markets Exploring Tokenized Term Deposit Using Stablecoin

National Australia Bank (ASX:NAB) partnered with Imperium Markets to test the feasibility of issuing and maturing a tokenized term deposit using a stablecoin as a form of tokenized money, according to a Friday statement from the bank.Proof-of-concept transactions were undertaken on Imperium Markets' marketplace.The bank participated in Project Acacia to explore the role that the central bank and privately issued forms of digital money could play in supporting the development of wholesale tokenized asset markets.Project Acacia is a joint initiative by the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre.The bank said it also participated in the Deposit Token Working Group, exploring whether a tokenized claim on a bank can be treated as a deposit under Australian law.

Australian Shares Close Modestly Higher; National Australia Bank Boosts Provisions to Reflect Middle East Conflict Impact

Australian shares were modestly higher at Monday's close as oil prices spiked and investors weighed the rising tensions between the ​US and Iran.The S&P/ASX 200 Index increased slightly by 6.4 points to close at 8,953.30.Tensions rose in the Middle East as the US seized an Iranian cargo ship and Iran's top military command said they would retaliate. The ceasefire between the two countries is set to expire on Tuesday.US President Donald Trump said he was sending envoys for talks in Pakistan and that he would launch new strikes on Iran if it didn't agree to his terms. However, Iran rejected new peace talks with the US, its state news agency reported.Brent crude oil futures were up by 5.7% to $95.50 per barrel.On the domestic front, ANZ said it expects Australia's underlying cash deficit to be little changed from the Mid-Year Economic and Fiscal Outlook at AU$37 billion in fiscal 2025 to 2026 and AU$36 billion in fiscal 2026 to 2027, with deficits averaging about 1% of gross domestic product likely over the forward estimates through to fiscal 2029 to 2030.Australian households' fuel spend dropped 3.8% to AU$163.4 million in the week that started April 6, following a nearly 18% decline to AU$169.8 million in the week before.In company news, National Australia Bank (ASX:NAB) said it expects fiscal first-half credit impairment charges of AU$706 million as it lifts provisions to reflect risks stemming from the Middle East conflict. The AU$300 million net increase in forward-looking collective provisions includes a AU$201 million increase in forward-looking adjustments for potential stress in sectors that are more likely to see an impact from fuel supply and cost issues.Viva Energy Group (ASX:VEA) reported a 5.1% year-over-year increase in first-quarter sales volume to 4,302 megaliters, driven by an increase of 7.1% in commercial and industrial fuel volume. The company said its Geelong refinery does not typically source Middle Eastern crude.Lastly, Worley (ASX:WOR) said the adverse impact of the Middle East conflict on its fiscal 2026 underlying earnings before interest, tax, and amortization is estimated to range from AU$30 million to AU$40 million.

Update: National Australia Bank Boosts Provisions to Reflect Middle East Conflict Impact; Shares Fall 4%

(Updates to add stock movement in the headline and last paragraph)National Australia Bank (ASX:NAB) said it expects fiscal first-half credit impairment charges of AU$706 million as it lifts provisions to reflect risks stemming from the Middle East conflict, according to a Monday filing with the Australian bourse.The bank also plans to discount and partial underwrite its first-half dividend reinvestment plan, and has made changes to its software capitalization policy to align it with an environment of fast technological change.The AU$300 million net increase in forward-looking collective provisions includes a AU$152 million increase related to economic adjustments, a AU$201 million increase in forward-looking adjustments for potential stress in sectors that are more likely to see an impact from fuel supply and cost issues, as well as a AU$53 million release in forward looking adjustments, the bank said.The company's ratio of collective provisions to credit risk-weighted assets is expected to be 1.35% as of March, up from 1.31% in December 2025, and underlying provision charges are anticipated to be AU$406 million.Interest rate volatility and a weakening of the New Zealand dollar in the fiscal second quarter, coupled with the higher provisions, have reduced the bank's common equity Tier 1 ratio at March 31 by about 20 basis points, it said. The bank expects to report a pro forma group CET1 ratio of greater than 12%, including the benefit of a 1.5% discount to the dividend reinvestment plan.The initiatives to strengthen its capital position and balance sheet are expected to raise up to AU$1.8 billion and contribute up to about 40 basis points to the CET1 ratio in the fiscal second half, the bank said.National Australia Bank, which is due to report half-year results on May 4, confirmed guidance for fiscal 2026 cash operating expense growth to be less than 4.6%.The bank's shares fell around 4% in recent Monday trade.

Australian Banks Back Interest-Free Loans Under Australian Government Program

Australian banks support the roll-out of interest-free loans to businesses through the government's AU$1 billion Economic Resilience Program under the National Reconstruction Fund, the Australian Banking Association said in a statement on Monday.Businesses in identified priority sectors with an annual turnover of AU$100 million or less can secure a zero-interest loan of up to AU$5 million under the program, the banking group said.Banks participating in the program include the Commonwealth Bank of Australia (ASX:CBA), National Australia Bank (ASX:NAB), Westpac Banking (ASX:WBC, NZE:WBC), and ANZ Group (ASX:ANZ, NZE:ANZ), per the statement.Commonwealth Bank shares fell nearly 1% in morning trade in Australia, while National Australia Bank shares were down past 3%.Meanwhile, Westpac Banking and ANZ Group shares fell nearly 1% in recent trade in New Zealand.

ASX Preview: Australian Shares Set to Fall as US-Iran Tensions Escalate; Viva Energy's Geelong Refinery to Produce Petrol at 60% of Capacity Over Short Term

Australian shares are poised to fall on Monday as escalating US-Iran tensions, including the seizure of an Iranian cargo ship and threats of retaliation that have put a fragile ceasefire at risk, rattled global markets and pushed oil prices sharply higher.On April 17, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 1.2%, 1.5%, and 1.8%, respectively.In corporate news, Viva Energy Group (ASX:VEA) said its fire-hit Geelong refinery is expected to produce diesel and jet fuel at about 80% of capacity and petrol at roughly 60% of capacity in the short term.National Australia Bank (ASX:NAB) said it expects fiscal first-half credit impairment charges of AU$706 million as it lifts provisions to reflect risks stemming from the Middle East conflict.Australia's benchmark index fell 0.1% or 8.1 points to close at 8,946.90 on April 17.